While most of Wall Street focuses on large and mega-cap stocks, as they provide a degree of safety and liquidity, many investors are limited in the number of shares they can buy. Many of the biggest public companies, especially the technology giants, trade in the hundreds, all the way up to over $1,000 per share or more. At those steep prices, it’s pretty hard to get any decent share count leverage.

Many investors, especially more aggressive traders, look at lower-priced stocks as a way to not only make some good money but to get a higher share count. That can really help the decision-making process, especially when you are on to a winner, as you can always sell half and keep half.

Goldman Sachs is the premier investment bank in the world, so we screened the firm’s outstanding research database and found four biotech stocks trading under the $10 level that could provide investors with some solid upside potential.

While all four are rated Buy at Goldman Sachs, they are much better suited for aggressive accounts. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.

Axcella Health

This clinical-stage biotechnology company recently received some big patent news. Axcella Health Inc. (NASDAQ: AXLA) researches and develops endogenous metabolic modulators for the treatment of complex diseases and improving health in the United States.

Its candidates include:

• AXA1665 for use in treating overt hepatic encephalopathy
• AXA1125 and AXA1957 to treat non-alcoholic steatohepatitis
• AXA2678 to treat muscle atrophy
• AXA4010 to target multiple biological pathways to support normal structures and functions of the blood

Last month, Axcella announced that the issuance of new patents has resulted in two lead product candidates (AXA1665 and AXA1125) now being covered under U.S. patents for both composition of matter and methods of use. These are the first patents related to Axcella’s family of applications for AXA1665, the firm’s product candidate to reduce the risk of overt hepatic encephalopathy recurrence.

Goldman Sachs has a large $8 price target on the shares, which compares with the much higher Wall Street consensus target of $18. Shares slipped below $5 early last week but recovered by week’s end.

CytomX Therapeutics

This is a small-cap oncology-focused biopharmaceutical company. CytomX Therapeutics Inc. (NASDAQ: CTMX) develops a novel class of investigational antibody therapeutics based on its Probody technology platform for the treatment of cancer.

The U.S. company’s product candidates in the clinical stage include:

• CX-072, a Probody therapeutic targeting programmed cell death ligand 1 immuno-oncology target
• CX-2009, a Probody drug conjugate (PDC) against CD166 novel drug target
• BMS-986249, a CTLA-4 Probody therapeutic drug for the treatment of metastatic melanoma
• CX-2029, a PDC targeting CD71 for solid tumors
• BMS-986288, an anti-CTLA-4 Probody drug for solid tumors

CytomX has strategic collaborations with AbbVie Ireland Unlimited, Amgen, Bristol-Myers Squibb, ImmunoGen, Pfizer and Astellas Pharma to develop Probody therapeutics.

The Goldman Sachs price target is a massive $18, while the consensus target is $14.30. The shares have traded mostly between $8 and $9 for the past several weeks.

This clinical-stage health care company recently had a 4,750,000-share secondary offering to help shore up its cash position. Kaleido Biosciences Inc. (NASDAQ: KLDO) develops microbiome metabolic therapies. The company offers product candidates for the treatment of urea cycle disorders, hepatic encephalopathy, infections caused by multidrug-resistant bacteria, cardiometabolic and liver diseases, and immune oncology.

The company has:

• A collaboration agreement with Gustave Roussy Cancer Center to develop microbiome metabolic therapies in immuno-oncology
• A research collaboration with Washington University School of Medicine to explore the influence of microbiome metabolic therapies on microbial and host physiology and metabolism
• A research collaboration with Janssen to prevent childhood-onset of atopic, immune and metabolic conditions

Goldman Sachs has set a $16 price objective. The consensus target price is $13.25, and the stock found support at $6 last week.

Magenta Therapeutics

This could be another red-hot play for investors looking at biotech. Magenta Therapeutics Inc. (NASDAQ: MGTA) is a clinical-stage biotechnology company developing therapeutics to transform hematopoietic stem cell transplants for patients with immune and blood-based diseases. It maintains a platform with integrated and modular approach, which aims to reboot the blood and immune systems.

The company also has a pipeline of small molecules, biologics (including antibody drug conjugates) and a cell therapy, which transplant options for many more patients with autoimmune diseases, blood cancers and genetic diseases. Magenta’s C100 program targets hematopoietic stem cells (HSCs), immune cells and disease-causing cells. The C200 program targets HSCs and disease-causing cells, and the C300 program targets only immune cells.

Magenta also has a research and clinical collaboration agreement with Avrobio to evaluate targeted antibody-drug conjugate as a conditioning regimen for lentiviral gene therapies.

The massive $15 Goldman Sachs price target compares to the higher $17.33 consensus target. Shares ended last week at $8.00.

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These four sizzling biotech stocks trading under the $10 level have big upside to the analysts’ price targets. Again, while not suitable for conservative accounts, aggressive investors can get some solid share leverage buying 5,000, 10,000 or more shares and can make money on a much smaller share price move. Plus, they are all covered with a Buy rating at the top firm on Wall Street.

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